Oil prices recover slightly but US tariffs, OPEC downgrade weigh
FILE PHOTO: A view shows oil pump jacks outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023. REUTERS/Alexander Manzyuk/ File Photo
BEIJING :Oil prices steadied in early trading on Friday following a 2 per cent drop in the previous session that was driven by U.S. President Donald Trump's new tariffs, expected to hurt economic growth, and a cut to OPEC demand forecasts.
Brent crude futures rose 19 cents, or 0.28 per cent, to $68.83 a barrel as of 0037 GMT. U.S. West Texas Intermediate crude ticked up 26 cents to $66.83 a barrel, up 0.39 per cent.
The Organization of the Petroleum Exporting Countries (OPEC), in its 2025 World Oil Outlook published on Thursday, cut its forecasts for global oil demand in 2026 to 2029 because of slowing Chinese demand.
Global demand will average 106.3 million barrels per day (bpd) in 2026, OPEC said, down from 108 million bpd expected in last year's forecast.
U.S. President Donald Trump on Thursday announced a 35 per cent tariff rate for goods imported from Canada, starting August 1, and said the United States planned to impose blanket tariffs of 15 per cent or 20 per cent on most other trade partners.
Earlier in the day, President Trump threatened punitive tariffs on Brazil, Latin America's largest economy, and laid out plans for duties on copper, semiconductors and pharmaceuticals.
The European Union is expected to propose a floating Russian oil price cap in a new sanctions package this week, after a fall in oil prices made the current cap irrelevant, according to EU diplomat sources on Thursday.
